Musk to dedicate more time to Tesla from May as company sees big drop in Q1 profit

Tesla CEO Elon Musk boards Air Force One with U.S. President Donald Trump (not pictured) as they depart for Philadelphia, Pennsylvania, from Morristown Municipal Airport in Morristown, New Jersey, U.S., March 22, 2025. (REUTERS)
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Updated 23 April 2025
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Musk to dedicate more time to Tesla from May as company sees big drop in Q1 profit

  • Tesla’ stock has fallen more than 40 percent this year but rose more than 3 percent in after-hours trading

NEW YORK: Elon Musk says he’ll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced angry protests over Musk’s leadership of a federal government jobs-cutting group that has divided the country.
Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell by 71 percent to to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9 percent to $19.3 billion in the January through March period, below Wall Street’s forecast.
The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s role in the Trump administration. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.
Some Tesla investors have complained that Musk has been too distracted by his role at the Department of Government Efficiency, or DOGE, to effectively run Tesla.
“This is a big step in the right direction,” said Wedbush Securities’ Dan Ives, referring to Musk’s time commitment. “Investors wanted to see him recommit to Tesla.”
Tesla’ stock has fallen more than 40 percent this year but rose more than 3 percent in after-hours trading.
Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable.
“They’re not particularly surprising given that deliveries were down,” Goldstein said, adding that the company is still generating cash. “It was good to see positive cash flow.”
The company generated $2.2 billion in operating cash versus $242 million a year earlier.
Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.
Its closely watched gross margins, a measure of earnings for each dollar of revenue, fell to 16.3 percent from 17.4 percent.
The company that once dominated EVs is also facing fierce competition for the first time.
Earlier this year, Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk.
Investors expect Tesla will be hurt less by the Trump administration’s tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won’t be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes.
Tesla warned that tariffs will hit its energy storage business, too.
“While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive,” the company said, “we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”
Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
The company side business of selling “regulatory credits” to other automakers that fall short of emission standards boosted results for the quarter.
The company generated $595 million from credit sales, up from $442 million a year ago.

 


Court ruling jeopardizes freedom for pro-Palestinian activist Mahmoud Khalil

Updated 15 January 2026
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Court ruling jeopardizes freedom for pro-Palestinian activist Mahmoud Khalil

  • The panel ruled a federal judge in New Jersey didn’t have jurisdiction to decide the matter at this time
  • The law bars Khalil “from attacking his detention and removal in a habeas petition,” the panel added

WASHINGTON: A federal appeals panel on Thursday reversed a lower court decision that released former Columbia University graduate student Mahmoud Khalil from an immigration jail, bringing the government one step closer to detaining and ultimately deporting the Palestinian activist.
The three-judge panel of the 3rd US Circuit Court of Appeals didn’t decide the key issue in Khalil’s case: whether the Trump administration’s effort to throw Khalil out of the US over his campus activism and criticism of Israel is unconstitutional.
But in its 2-1 decision, the panel ruled a federal judge in New Jersey didn’t have jurisdiction to decide the matter at this time. Federal law requires the case to fully move through the immigration courts first, before Khalil can challenge the decision, they wrote.
“That scheme ensures that petitioners get just one bite at the apple — not zero or two,” the panel wrote. “But it also means that some petitioners, like Khalil, will have to wait to seek relief for allegedly unlawful government conduct.”
The law bars Khalil “from attacking his detention and removal in a habeas petition,” the panel added.
Ruling won’t result in immediate detention
It was not clear whether the government would seek to detain Khalil, a legal permanent resident, again while his legal challenges continue.
Thursday’s decision marked a major win for the Trump administration’s sweeping campaign to detain and deport noncitizens who joined protests against Israel.
In a statement distributed by the American Civil Liberties Union, Khalil said the appeals ruling was “deeply disappointing, but it does not break our resolve.”
He added: “The door may have been opened for potential re-detainment down the line, but it has not closed our commitment to Palestine and to justice and accountability. I will continue to fight, through every legal avenue and with every ounce of determination, until my rights, and the rights of others like me, are fully protected.”
Baher Azmy, one of Khalil’s lawyers, said the ruling was “contrary to rulings of other federal courts.” He noted the panel’s finding concerned a “hypertechnical jurisdictional matter,” rather than the legality of the Trump administration’s policy.
“Our legal options are by no means concluded, and we will fight with every available avenue,” he added, saying Khalil would remain free pending the full resolution of all appeals, which could take months or longer.
The ACLU said the Trump administration cannot lawfully re-detain Khalil until the order takes formal effect, which won’t happen while he can still immediately appeal.
Khalil has multiple options to appeal
Khalil’s lawyers can request the active judges on the 3rd Circuit hear an appeal, or they can go to the US Supreme Court.
An outspoken leader of the pro-Palestinian movement at Columbia, Khalil was arrested on March 8, 2025. He then spent three months detained in a Louisiana immigration jail, missing the birth of his firstborn.
Federal officials have accused Khalil of leading activities “aligned to Hamas,” though they have not presented evidence to support the claim and have not accused him of criminal conduct. They have also accused Khalil, 30, of failing to disclose information on his green card application.
The government has justified the arrest under a seldom-used statute that allows for the expulsion of noncitizens whose beliefs are deemed to pose a threat to US foreign policy interests.
In June, a federal judge in New Jersey ruled that justification would likely be declared unconstitutional and ordered Khalil released.
President Donald Trump’s administration appealed that ruling, arguing the deportation decision should fall to an immigration judge, rather than a federal court.
Khalil has dismissed the allegations as “baseless and ridiculous,” framing his arrest and detention as a “direct consequence of exercising my right to free speech as I advocated for a free Palestine and an end to the genocide in Gaza.”
Dissenting judge says Khalil has right to fight detention

Judge Arianna Freeman dissented Thursday, writing that her colleagues were holding Khalil to the wrong legal standard. Khalil, she wrote, is raising “now-or-never claims” that can be handled at the district court level. He does not have a final order of removal, which would permit a challenge in an appellate court, she wrote.
Both judges who ruled against Khalil, Thomas Hardiman and Stephanos Bibas, were Republican appointees. President George W. Bush appointed Hardiman to the 3rd Circuit, while Trump appointed Bibas. President Joe Biden, a Democrat, appointed Freeman.
The majority opinion noted Freeman worried the ruling would leave Khalil with no remedy for unconstitutional immigration detention, even if he later can appeal.
“But our legal system routinely forces petitioners — even those with meritorious claims — to wait to raise their arguments, the judges wrote. “To be sure, the immigration judge’s order of removal is not yet final; the Board has not affirmed her ruling and has held the parties’ briefing deadlines in abeyance pending this opinion. But if the Board ultimately affirms, Khalil can get meaningful review.”
The decision comes as an appeals board in the immigration court system weighs a previous order that found Khalil could be deported. His attorneys have argued that the federal order should take precedence.
That judge has suggested Khalil could be deported to Algeria, where he maintains citizenship through a distant relative, or Syria, where he was born in a refugee camp to a Palestinian family.
His attorneys have said he faces mortal danger if forced to return to either country.